What Is My Debt To Income Ratio
Your debt-to-income ratio is an important metric when it comes to determining whether you qualify for certain types of loans. When a lender considers whether or not to let you borrow money it wants information about how you handle your finances both past and present. Take The Time To Calculate Your Debt To Income Ratio Debt To Income Ratio Financial Wealth Budgeting Money The 43 percent debt-to-income ratio is important because in most cases that is the highest ratio a borrower can have and still get a Qualified Mortgage. What is my debt to income ratio . However some government loans allow for higher DTIs often in the 41-43 range. Heres how youd calculate your debt-to-income ratio. Its important not to confuse your debt-to-income ratio with your credit utilization which represents the amount of debt you have relative to your credit card and line of credit limits. If your DTI ratio is high it means you probably spend more income than you should on debt payments. You can ca...